Joint stock company

In common joint stock company is a company where shares of the company or the stocks can be bought and sold by the shareholders of that company. These joint stock companies have some characteristics they are:

1. It is a voluntary association it means a joint stock company access a volunteer where no other person force anyone to become the member of the joint stock company or no one can force the existing members to leave the membership of the company. Everything is a voluntary decision here hence it is called as a voluntary association
2. joint stock company is an incorporated association that means it has been registered under the companies act of 2013 on the registration or incorporation of a company becomes a corporate body  or corporation. As it becomes separate from the individuals who are the members of the company
3. joint stock company is an artificial person which is created by law it means that a company has no body or soul in other words we can say that the company has no natural existence or the physical existence but it is created by law it exists in the eyes of the law it was considered as an entity in the eyes of law
4. every joint stock company will have a specific objectives weather what objectives that the company must achieve and this object is must be specified in the memorandum of association as company can undertake two activities which are intended to achieve the specific objectives of the company.
5. joint stock company has a separate legal entity as we can say that the company is distinct from its members it is considered as separate from its shareholders hence shareholders can sue the company and be sued. the property of the joint stock company can be only used for the benefit of the company and not for the personal uses.
6. a company has a separate property that means a shareholder of the company will have no right over the property and the company has the right to own and transfer its property in its own name as it is a legal entity shareholders will have the right only to the exact extent of shares held by them therefore company claims that only creditors will be against the company's property and not the top for shareholders of the company.
7. Company has a continuous existence in other words we also can say that the company has a perpetual succession that means whoever may come in and whoever may go out of the company the company will exist throughout its life it will continue even men come and men go until and unless it is wind up according to the law. The life of joint stock company cannot be affected by the death insanity of solvency of any of its members.
8. There is a process of transfer ability of shares of the company where the shares are movable property it can be transferable a member of the company can sell his shares in the open market or either he can transfer it to anybody he likes in the public limited company.
9. joint stock company has a large membership it is an association of person that means it will definitely be having large number of members in fact any number of person can become the member of public companyas there is no limit to the maximum numbers of members however in case of the private company there is a limitation on the 50 people can be the members of the company